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April 3, 2022
Question

Taxes Doubled!

  • April 3, 2022
  • 2 replies
  • 0 views

Last year, my 1099-NEC was not treated as self-employment in my return, this year Turbo Tax is forcing it to be. It has double my amount of taxes! I just want to know if this is correct? and if so what has changed from last year?

2 replies

Employee
April 3, 2022

What kind of work did you do to get the 1099NEC?   Typically a 1099NEC is issued for non-employee compensation---to an independent contractor,   so you have to pay self-employment tax for Social Security and Medicare as well as ordinary income tax.

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

 

And did you enter business expenses on a Schedule C?

 

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
LeonardS
April 3, 2022

Generally, Form 1099-NEC is for self-employment income that is reported on Schedule C.  If you report your 1099-NEC on Schedule C you will not be taxed twice.

 

Follow these steps to enter your 1099-NEC in TurboTax:

 

  1. Sign in to your TurboTax account if it is not open
  2. Enter 1099-NEC into the search box
  3. Click on Jump to 1099-NEC in the results box
  4. Answer yes to the question Did you get a 1099-NEC
  5. On the page Do You Want to Enter Your 1099-NECs Now click Add a 1099-NEC
  6. Answer the questions on the page Let's get the info from your 1099-NEC
  7. Enter the reason for the 1099-NEC
  8. Follow the prompts to add your 1099-NEC information.

 

This TurboTax link What is a 1099-NEC? has information you may find useful

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